Legal Consequences of Car Repossession on Private Property

Legal car repossession is when you take a loan from credit unions, banks, or anywhere else to buy a car. And when you fail to pay the money back at the stipulated time, the lender will take the car back. Using your car as collateral for yourself or someone else can lead to repossession. In California, car repossessions can occur swiftly and unexpectedly.

And there is no mercy for late payments. Some days ago, a legal car repossession tow company came to collect a car from a man who had used the car as collateral for his friend. This caused a commotion between the man and the tow company. 

So the question of the day is whether the tow company is guilty of trespassing for trying to collect the man’s truck at home. Let’s find out.

Did the Tow Company Trespass?

The legal car repossession video captures the man stepping out of his compound and seeing the tow company on his premises. So he asked them what they were doing on his property. An agent from the company replied, “We saw you signed a bond application for a friend of yours to get out of jail, and you listed your title as collateral.”

“Your friend didn’t show up to court; it’s going to go past summary judgment,” he said further. The man who owns the property was trying to speak, but the tow company agent didn’t have it. The agent told the man they would take his tart Tahoe immediately since the bail bonds hadn’t received any payment and they couldn’t find his friend.

Lawyer’s View on the Legal Car Repossession Matter

As the video became a trending topic, TikTok attorney Ugo Lord gave his two cents. He explained that legal car repossession companies must follow the jurisdiction’s laws. This means they cannot breach the peace or use violence or even threats of violence to obtain a vehicle. 

The vehicle owner doesn’t have to give the keys to the repo team if they don’t want to. But that does not mean the repo team cannot come and tow the car. According to the law, as long as the vehicle is accessible to the public, they can proceed with the repossession, even if the vehicle is on private property.

The video does not show if the SUV was in a private garage. The repo team cannot open the garage and take the vehicle because it is not accessible to the public. This means the repo team is not guilty of trespassing since they can repossess the car.

Laws Concerning Legal Car Repossession

The rules that govern legal car repossession differ from state to state. However, repo companies are prohibited by federal law from engaging in unfair, misleading, or abusive activities or practices, regardless of state variations.

They can collect your car without your permission if it is in a public space. For example, they can take it from the parking lot while you are inside a Mall. But the repo company has to notify you that your car is with them. The tow company must notify you within 48 hours of the legal car repossession. 

The notice must provide contact details for the organization that repossessed your vehicle, the loan lender, and the legitimate owner. 

If personal property like a laptop is discovered in the car, the repo company cannot keep it from you. They also cannot take payment from you to get it. They don’t have the right to wreck your car or personal property. 

The repo team has a legal obligation to notify you of their intention to sell the car. They must do so at least fifteen days before the sale date and within 60 days following the legal car repossession. Additionally, they may auction or sell your car if you refuse to retrieve your belongings.

Conclusion

When your car is repossessed, it affects your daily activities. However, it is not too late to prevent repossession and save your vehicle.

With the laws of California regarding legal car repossession, you have a chance to reclaim your car. Although the process can be exhausting, you must focus and contact a lawyer so that they can help you determine the best course of action to take.